In this article, Trading Education provides essential information about the volatility of Safemoon that will embolden you to get to know the right time to invest and sell Safemoon.
Safemoon continues to enjoy its status as one of the best performing cryptocurrencies in 2021. This is the primary reason why it continues to be one of the trending digital currencies online.
This can be attributed to Safemoon being one of the first decentralized finance coins whose issuing authority (Safemoon Protocol) has made plans of taking advantage of the buzz around non-fungible tokens to create an NFT Marketplace in the form of a decentralized exchange.
With so much competition in such a saturated market, Safemoon continues to record impressive daily volumes of at least $10 million. Inasmuch as this is relatively low when compared to giants like Bitcoin (BTC) and Ethereum (ETH), such a statistic points to the direction of Safemoon being an attractive investment.
This is because investors have not abandoned the coin completely.
Safemoon took advantage of the crypto boom of April 2021 when it tested an all-time high of $0.00001399 on the 20th day of that month.
The native asset of the Safemoon Protocol was hit hard in May when the self-proclaimed DOGEFATHER, Elon Musk, announced that due to environmental concerns, he has stopped accepting Bitcoin as a payment method for TESLA products on Wednesday, 12th May 2021.
Since alternate coins (altcoins) follow Bitcoin (BTC) in bullish days and bearish seasons, Safemoon opened the day with a price of $0.00000949 and reached an intraday high of $0.00001045. News of Bitcoin’s delisting by Tesla shook the cryptocurrency market. This led Safemoon to drop to an intraday low of $0.00000806 and eventually closed the day at $0.00000875.
In the process, Safemoon shed 22.8708% of its day's high within minutes to an hour.
After recovering for the next 6 days, the cryptocurrency market went into a deep recession on 19th May 2021. This time the main perpetrator of the market slide was not Elon Musk but the Chinese government.
Bent on ending the use of digital currencies in China and the rest of the world, the central bank of the country announced a ban on the use of all forms of digital currencies.
This time Safemoon was one of the hardest-hit cryptocurrencies in the space. Although parent crypto Bitcoin fell by 30% on the day, it was nowhere near the percentage points Safemoon lost.
Safemoon opened on 19th May 2021 at $0.00000871 and reached an intraday high of $0.00000877. After the news started gaining ground, Safemoon dropped to an intraday low of $0.00000331 and eventually recovered some of the dips to close at $0.00000569. In the process, Safemoon shed 62.2577% of its day's high within a few hours.
After numerous attempts to recover in the last week of May, the crypto trading asset ended the month with a price of $0.00000438. In a space of 21 days (12th May to 31st May), Safemoon dropped from heading towards large-cap market capitalization ($5,126,369,161) to flirting with the low-cap market capitalization mark ($2,565,078,512).
Such statistics shows the uncertainty of the cryptocurrency market. More specifically, it shows you how unpredictable all digital assets are including Safemoon.
While the uncertainty and drop in price show extensive signs of risk, several categories of traders profited from the sharp price movements of Safemoon.
Highly experienced cryptocurrency traders and day traders made huge gains from the multiple percentage swings that engulfed the whole crypto market.
This means that there are signs of opportunity to make gains depending on your knowledge about the cryptocurrency market and trading in general.
In addition to this, the fall in the price of Safemoon meant that traders and investors could buy more of the coins at the same price than when the coin reached new high highs in the early days of May 2021.
It may have crossed your mind that, with such uncertainty around the cryptocurrency market, how does a novice trader or investor decide when to invest and sell Safemoon and cryptocurrencies as a whole?
When To Buy And Sell Safemoon
Several cryptocurrency analysts and experts across portals such as Wallet Investor, Digital Coin Price, WSJ News, Price Prediction, Changelly, Trading Beasts, and Cryptopolitan believe bulls always follow bears and bears follow bulls.
To put it simply, when the price of SafeMoon sees new high lows, what follows is an uptrend. This sees price recovers and tests new high highs. On the other hand, if the price is soaring to new milestones, as a novice trader, you should know that whatever goes up must come down.
Therefore, prices of cryptocurrencies reach new high highs and then drop to new high lows.
All investments come with risk whether they are done through physical or digital means. Cryptocurrencies are highly speculative assets.
That is their market value depends on supply and demand. Continue to conduct independent research on Safemoon.
More importantly, Trading Education believes that for you to succeed in such an unpredictable market, having time for your investments to grow is better than trying to time the market.
Study the price performance of Safemoon from when it became a tradable token in March 2021 to today. Safemoon was worthless during its opening days and continues to trade at relatively low prices.
This has not stopped the coin from bringing astonishing returns of more than 11,000% to traders in just 8 months.
Don't Miss: SafeMoon Price Predictions
When To Invest In Safemoon?
The golden rule of investing is to buy when the price of SafeMoon asset is low and sell when you reach your selling point. At a price less than $0.000005, Safemoon is cheap.
With several bullish price forecasts by analysts that could see the coin reach new all-time highs, buying Safemoon can be considered a good investment.
When you compare the intraday low price of Safemoon on 19th May ($0.00000331) and SHIBs current price ($0.000004253), it is clear that the bears have ended.
Safemoon is trading at a price that fits into the investment budget of all manner of persons including the underbanked and unbanked.
Trading Education would like to point out that there is no perfect time to invest in Safemoon.
However, if you adhere to the aim of the Safemoon Protocol which is to buy and hold, as well as the golden rule of crypto investing, HODL (hold on for dear life), there is a huge chance of seeing enormous profits in the long term.
Did you know that with $100, you could buy about 20,000,000 (20 million) coins? Did you know that with $1,000, you could have about 200,000,000 (200 million) coins? Did you know that with a $10,000 investment, you could have about 2,000,000,000 (2 billion) Safemoons in your wallet?
Therefore, if you have a $100 or $1,000 that you are planning on staking on sports games and casinos, you can experiment with cryptocurrencies by investing in Safemoon.
Investing in Safemoon has given many people passive income, who knows, you could become one of the best earners from the cryptocurrency.
When To Sell Safemoon?
To be frank, there is no perfect time to sell your Safemoon holdings.
During the peak of the pandemic (March and April 2020) when the financial markets plunged to record lows, a buying opportunity engulfed the cryptocurrency market. On 17th March 2020, the price of Ether, the novel token behind the Ethereum Network was $110.41.
Several people purchased a full Ether (ETH) token due to its new high low price.
On the last day of April 2020, ETH reached an intraday high of $227.53. Rushing to lock in gains, some investors sold their ETH coin and made $117.12 as profit.
On the last day of July, ETH closed at $345.55 and on 31st August 2020, the cryptocurrency spiked to a new high of $435.08.
In trying to cash in from such a spike in price, holders who held onto the coin for 5 months (March to August) finally let it go, and made profits of $324.67.
What happened was a meteoric rise from trading in the $400 region to closing 2020 with a trading price of $737.80.
No one saw what was about to happen in 2021.
All cryptocurrencies have recorded at least 100% gains for investors. ETH on the other hand has returned more than 500% for investors after reaching a new all-time high of $4,664.91 on 3rd November 2021.
To patient investors who believed that the long term is the best way to see gains, their $110.41 investment has matured to more than $4,000.
So, how does this relate to Safemoon?
At Trading Education, we adhere to the principles of crypto investing.
So long as investors continue to have confidence in Safemoon which is reflected in its trading volume, even if its price is low, it is an ATTRACTIVE INVESTMENT.
As a novice, you should know that every trader has a price ceiling that they would sell their tokens.
Set up a personal all-time high price that you would like Safemoon to reach which would help you reach your investment goal.
On several exchanges, you would find a feature called PRICE ALERT.
Once Safemoon hits this price, you will be sent either an email or text message.
Depending on how early or late you see this alert, you could sell your Safemoons and make a decent profit.
While there are no right times to invest and sell Safemoon, you should know that selling Safemoon comes with a hefty fee. Currently set at 10% to prevent large selling, you would have to make more gains to make up for the selling fees.
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Virtual currencies are highly volatile. Your capital is at risk.